Security/Marketable Financial Assets

• Equity Shares : Equity Capital represents ownership capital. Equity shareholders collectively own the company. They bear the risk and enjoy the rewards of ownership

• Preference Shares : A preference share has preferential right to be paid dividend during the life-time of the company and they have a preferential right to the return of capital when the company goes into liquidation.

• Bond : A bond or fixed income instrument is a contract that requires the borrower to pay the interest income to the lender. It resembles the promissory note issued by the govt and corporate

• Debentures : A debenture is a document under the company’s seal which provide for the payment of principal sum and interest theron at regular intervals, which is usually secured by a fixed or floating charge on the company’s property or undertaking and which acknowledges a loan to the company.

• Convertible Securities : A convertible security is a security that can be converted into another security. Convertible securities may be convertible bonds or preferred stocks that pay regular interest and can be converted into shares of common stock

• Hybrid Securities : Term used to describe a security that combines elements of debt securities and equity securities.

• Derivatives : an arrangement or product (such as a future, option, or warrant) whose value derives from and is dependent on the value of an underlying asset, such as a commodity, currency, or security.

•Money Market Instruments :• Commercial Bill : a bill of exchange issued by a commercial

organization to raise money for short-term needs.

• T Bills : A treasury bill (T-Bill) is a short-term debt obligation backed by the government with a maturity of less than one year.

• Commercial Papers (CP) : short-term unsecured promissory notes issued by companies.

• Certificates of Deposits :a certificate issued by a bank / other financial institution to a person depositing money for a specified length of time at a specified rate of interest.

Non-Security/Non Marketable Financial Assets

• Fixed Deposits/ Term Deposits : A fixed deposit (FD) is a financial instrument provided by banks which provides investors with a higher rate of interest than a regular savings account, until the given maturity date. It may or may not require the creation of a separate account.

• Gilt-Edged Securities : Debt securities issued by the central govt. agencies are referred to as government securities or gilt-edged securities.• Post Office Schemes/Deposits :• National Savings Certificates (NSC) National Savings Certificates,

popularly known as NSC, is an Indian Government Savings Bond, primarily used for small savings and income tax saving investments in India. It is part of the postal savings system of Indian Postal Service (India Post).